TREASURY - parliament.nsw.gov.au

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Budget Estimates

Portfolio Committee No 1 – Premier and Finance

TREASURY

Friday, 20 August 2021

SUPPLEMENTARY QUESTIONS

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Supplementary Questions

Questions from the Hon Mark Buttigieg MLC (on behalf of the Opposition)

NSW Generations Fund

1. Did the Treasurer deposit any windfall tax revenue into the NSW Generations Fund

(Debt Retirement Fund) in FY 20/21?

a. If so, what was the size of the deposit?

RESPONSE

No.

2. Did the NSW Generations Fund (Debt Retirement Fund) receive any distributions in

FY 20/21?

a. If so, how much did the fund receive?

b. Was this distribution paid by Roads Retained Interest Pty Ltd?

c. If not, who paid the distribution?

RESPONSE

The Fund received $95 million in Roads Retained Interest Pty Ltd (RRIPL)

distributions during 2020-21.

3. Which agencies or departments had a cash surplus at the end of financial year 20/21?

a. Is the Government depositing these agencies cash surplus into the NSW

Generations Fund (Debt Retirement Fund)?

RESPONSE

For details of agencies’ operating cash performance, please refer to Budget Paper 4 –

Agency Financial Statements.

The Government is not depositing into the NSW Generations Fund (Debt Retirement

Fund) any agencies’ cash surpluses or cash assets required for operating. There is a

clear separation between agencies’ own operating cash and working capital, which

they hold on to in their own accounts, and any surplus cash that may be deposited into

the Debt Retirement Fund.

4. For the NSW Generations Fund (Debt Retirement Fund), what are the current strategic

assets allocations in:

a. Australian shares?

b. International shares?

c. Emerging Market Shares?

d. Alternatives?

e. Unlisted property and infrastructure?

f. Opportunistic?

g. Emerging market debt?

h. Bank loans?

i. High yield?

j. Cash?

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RESPONSE

The Fund's asset allocation as of 30 June 2021 was:

As at 30 June 2021 Asset allocation

Australian Shares 11.95%

International Shares 22.68%

Emerging Market Shares 5.62%

Alternatives 25.53%

Unlisted Property and Infrastructure 9.66%

Opportunistic 1.65%

Emerging Market Debt 6.06%

Bank Loans 4.84%

High Yield 3.04%

Cash 8.97%

Total 100.00%

5. As of budget day, how much was the government intending to contribute to the NSW

Generations Fund (Debt Retirement Fund) in each year of the forward estimates?

RESPONSE

This information is available in the 2021-22 Budget papers.

6. Who are the members of the NSW Treasury’s Assets and Liability Committee?

RESPONSE

The Assets and Liability Committee consists of the following members, as of its latest

meeting on 25 August 2021:

• Philip Gardner (Chair) - Deputy Secretary, Commercial and Procurement, NSW

Treasury

• San Midha (Deputy Chair) - Deputy Secretary, Policy and Budget, NSW

Treasury

• David Deverall - CEO, TCorp

• Richard Harding - CEO and Managing Director, icare

• Simon Ling - General Manager, Financial Markets, TCorp

• Shaun Smith - Deputy Secretary, Corporate Services, Department of Planning,

Industry & Environment

7. Does the NSW Generations Fund (Debt Retirement Fund) have an investment

mandate?

a. If so, can you provide?

b. When was it determined?

c. When was the last time it was updated?

d. If not, why not?

RESPONSE

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There is an Investment Services Agreement (ISA) setting out the Fund's governance

arrangements and investment risk/return objectives. The ISA sets out how the Fund is

to be managed including Investment Benchmarks and Guidelines.

Please refer to the NSW Generations Fund Annual Reports

(https://www.budget.nsw.gov.au/nsw-generations-fund) for publicly available

information on its investment strategy.

8. Does T-Corp invest the monies contained in the NSW Generations Fund (Debt

Retirement Fund) using other firms or managers?

a. If so, please list the managers by each asset class referred to in question four?

b. How are these managers selected?

c. Who assesses their performance, and how often are their performances

assessed?

d. Has T-Corp terminated any manager since the fund was created?

i. If so, who was terminated?

ii. What were the reasons for termination?

e. How are assets managers remunerated?

f. Has T-Corp imposed any key performance indicators on any asset manager?

i. If so, what are they?

ii. How were these KPIs determined?

RESPONSE

TCorp does invest monies contained in the NSW Generations Fund (Debt Retirement

Fund) using other firms or managers.

a. Below is the list of NGF managers by each asset class referred to in question

4.

Asset Class NGF manager as at 12 August 2021

Alternatives FULCRUM

GAM

GMO

INVESCO

K2 Advisors

MAN

PINEBRIDGE

PYRFORD

Australian Equity ALPHINITY

AUSBIL

BLACKROCK

MACQUARIE SECURITIES

NORTHCAPE

PENDAL

PLATYPUS

Bank Loans ICG

KKR

PINEBRIDGE

https://www.budget.nsw.gov.au/nsw-generations-fund

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Cash TCORP_AM

TCORP_IM

Emerging Market Debt LAZARD

NINETY_ONE

Emerging Market Equity BLACKROCK

NINETY_ONE

NORTHCAPE

SCHRODERS

Global High Yield BRIGADE

International Equity ARDEVORA

ARTISAN

BLACKROCK

HARRIS

MFS

NINETY_ONE

NORTHERN_TRUST

ROBECO

Opportunistic KKR

RESOLUTION_LIFE

Unlisted Infrastructure HERMES

IFM

MORGAN STANLEY

MORRISON

TCORP_IM

TCORP_STEPSTONE

WHITEHELM

Unlisted Property AMP_CAPITAL

BLACKSTONE

BROOKFIELD

DEXUS

EG

GPT

LOGOS

TCORP_IM

b. Managers are selected by TCorp following the application of a thorough

assessment and governance process including detailed investment due

diligence and operational due diligence of managers. This is implemented in

accordance with TCorp’s board and management policies.

c. Manager investment performance is reviewed by TCorp’s Portfolio Delivery

team which reports to the Chief Investment Officer. Manager performance is

reviewed on a monthly basis. Exceptions are presented to TCorp’s

Management Investment Committee on a quarterly basis.

d. TCorp has terminated managers since the fund was created. Below is the list

of terminated managers and the reasons for their termination.

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Asset Class NGF manager Termination Reason

Alternatives BLACKROCK Sustained underperformance

JPM Portfolio manager departure

Australian Equity AB Restructure of the asset class

ALPHINITY Restructure of the asset class

BLACKROCK Restructure of the asset class

COOPER Restructure of the asset class

DIMENSIONAL Restructure of the asset class

FIDELITY Restructure of the asset class

LAZARD Restructure of the asset class

MERLON Restructure of the asset class

REALINDEX Restructure of the asset class

YARRA CAPITAL Restructure of the asset class

Emerging Market Equity HGI Restructure of the asset class

ROBECO Restructure of the asset class

WASATCH Restructure of the asset class

Global High Yield NOMURA Restructure of the asset class

International Equity AQR Restructure of the asset class

ARROWSTREET Restructure of the asset class

C WORLDWIDE Restructure of the asset class

COPPER_ROCK Restructure of the asset class

DIMENSIONAL Restructure of the asset class

PANAGORA Restructure of the asset class

SCHRODERS Restructure of the asset class

SSGA Restructure of the asset class

VERITAS Restructure of the asset class

Listed Infrastructure BLACKROCK Asset class terminated

Listed Property BLACKROCK Asset class terminated

Unlisted Infrastructure SSGA Manager consolidation

Unlisted Property INVESTA A combination of scale and structural changes

e. Consistent with industry practice, managers are remunerated in accordance

with investment management agreements, typically via a fee charged

according to the funds under management in the strategy. In some cases, such

as alternatives and private markets, remuneration may include a performance

fee.

f. TCorp imposes key performance indicators on asset managers. KPIs are

established for performance objectives, investment parameters including

restrictions, breach notification, reporting obligations, including timing of

reporting delivery, and permissions. These are established according to the

investment strategy and agreed through negotiation with managers, referring

to industry standards, TCorp and client needs.

9. Referring to page A1-9 of the Budget, what is the definition of:

a. Cash flows from investments in non-financial assets?

b. Cash flows from investments in Financial assets for policy purposes?

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c. Cash flows from investments in financial assets for liquidity purposes

d. Regarding the line item. ’Net cash flows from investments in financial assets

for liquidity purposes, please list investment by fund or agency for each year

of the forward estimates?

RESPONSE

The Uniform Presentation Framework (UPF) is presented in accordance with the

Australian Accounting Standard AASB 1049 Whole of Government and General

Government Sector Financial Reporting, which adopts a harmonised Government

Finance Statistics (GFS)/Generally Accepted Accounting Principles (GAAP)

reporting basis.

Government Debt

10. How much NSW Government debt is currently owned by the Reserve Bank of

Australia?

a. How much has the NSW Government paid to the RBA in interest in each year

for the last two years?

RESPONSE

As at 31 July 2021, the Reserve Bank Australia (RBA) held nearly $11.4 billion of

TCorp debt.

The amount of interest paid to the RBA by TCorp in 2019-20 was ~$30 million.

11. Please list NSW’s top 10 creditors, and the amount NSW owes each of them?

RESPONSE

The list of NSW’s top 10 creditors is commercial-in-confidence and cannot be

disclosed.

Housing Affordability

12. Has NSW Treasury undertaken any modelling on the impact of the last decade of

NSW Government policy on housing prices?

a. If so, what did this modelling conclude?

b. Has it been published?

c. If not, why not?

RESPONSE

NSW Treasury has not modelled the impact of the last decade of NSW Government

policy on housing prices.

13. Has NSW Treasury modelled or estimated the number of dwellings that would need to

be constructed each year to reduce annual property price increases to at or near zero?

a. If so, how many dwellings would be required?

RESPONSE

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NSW Treasury has not modelled (or estimated) the number of dwellings needing to be

constructed annually to reduce property price increases to at or near zero.

14. The 2021-22 NSW Intergenerational Report notes that strong housing price growth has

been driven by declining interest rates and a supply-constrained housing market, what

does NSW Treasury consider to be the largest contributors to the supply constraints on

the housing market?

RESPONSE

As outlined in the 2021 New South Wales Intergenerational Report (IGR), there was

an extended period in the late 2000s and early 2010s where the amount of new

housing being built was not sufficient to keep pace with population growth and

changes in underlying demand. This resulted in an accumulated housing undersupply

which was first reported in the 2016 IGR.

A range of factors contribute to housing supply constraints. The NSW Productivity

Commission’s Productivity White Paper outlines in detail some of the key challenges

in delivering sufficient housing supply for NSWs growing population.

15. The 2021-22 NSW Intergenerational Report notes that achieving the construction of

the projected 1.7 million new homes by 2060-61 will “…be a significant challenge”.

What are the key challenges that need to be addressed to meet this home building

challenge?

RESPONSE

As outlined in the 2021 NSW Intergenerational Report (IGR), New South Wales will

need to add an average of 42,000 new homes every year for the next 40 years to meet

demand. NSW has experienced record high construction activity over recent years due

to a concerted effort to increase planning approvals and build enabling infrastructure

in priority precincts. Developers were also incentivised by strong housing price

growth, which was itself partly driven by an accumulated undersupply as outlined in

the 2016 NSW Intergenerational Report.

The IGR further notes that maintaining a similar focus could be difficult to sustain

over the coming decades, particularly as vacant land becomes scarcer which increases

the need for development in the areas that have already been built up.

The NSW Productivity Commission’s Productivity White Paper outlines in detail

some of the key challenges in delivering sufficient housing supply for NSW’s

growing population.

16. How much are housing prices likely to rise as a result of supply chain constraints on

building materials?

RESPONSE

NSW Treasury has not modelled the impact on housing prices as a result of supply

chain constraints on building materials.

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Test and Isolate Support Payments

17. What is the estimated cost of the NSW Government’s “Test and Isolate” Support

Payment?

RESPONSE

NSW Health prepared the costings to support the Test and Isolate program. This

question should be referred to the Minister for Health.

18. Was NSW Treasury asked to estimate the cost of extending “Test and Isolate” Support

Payments to residents of the Wollongong local government area?

a. If so, what was the estimated cost?

RESPONSE



19. Was NSW Treasury asked to estimate the cost of extending “Test and Isolate” Support

Payments to areas of Greater Sydney beyond the local government areas of concern?

a. If so, what was the estimated cost?

RESPONSE



20. Did NSW Treasury provide advice that eligibility for the “Test and Isolate” Support

Payments should be limited to a specific geographic region?

a. Was NSW Treasury consulted on the decision to limit the payment by

geography rather than for health reasons?

RESPONSE

Advice provided to the Crisis Policy Committee of Cabinet is Cabinet-in-Confidence.

Women in Leadership

21. How many SES positions are employed in Treasury?

a. How many SES positions in Treasury are filled by women?

RESPONSE

As of 1 September 2021, there are 108 SES positions employed in ongoing roles in

Treasury. 44 of these roles are held by women.

Efficiency Dividend

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22. Since the 2018-19 NSW Budget, there has been 4 years of 3% efficiency dividends

required by each agency.

a. How has Treasury met the efficiency dividend requirements over the last 4

years?

b. How many positions in Treasury have been required to be made redundant in

the last 4 years?

i. What position levels were made redundant?

ii. What location/s were these positions originally based in?

c. What services have been cut by Treasury to comply with the efficiency

dividend requirements over the last 4 years?

RESPONSE

a. Efficiency dividend requirements have been met by reducing the available budget

across several expenditure categories and implementation of key strategies across

Procurement, employee related and other reform.

1. Procurement - NSW Procurement works to deliver whole of government savings

by embedding ongoing category management.

Key elements of this strategy include:

• Negotiate better terms on large consultancy engagements

• Contracting and Procurement Strategies

• Utilising internal data to drive targeted cost reduction strategies

• Align contractor pay rates to benchmarks

The Treasury cluster have implemented these strategies across its procurement base

to achieve allocated Procurement savings.

2. Reduction in employee related expenses by:

• Reshaping the workforce in light of Machinery of Government and changing

demands and strategy for achieving outcomes budgeting.

• Functional and efficiency reviews of Groups joining Treasury following MoG

changes

• Proportionate savings allocation to other entities within the Cluster to identify

employee savings Budgets allocated to members of the Treasury leadership

team with significant target savings measures applied to their baseline, requiring

Groups to conduct one or more of the following initiatives:

i. Re-prioritise resource requirements to deliver key priorities in line

with business plans.

ii. Streamline systems and processes through restructures,

consolidation and/or abolitions of teams or functions. This also

includes consolidation of existing functions between agencies.

iii. Implement redundancy and change management initiatives.

iv. Identify opportunities to not fill current vacancies and eliminate

roles.

v. Recruit by exception.

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3. Other Reform:

• More effective contractor management, including streamlining contractor rates,

conversion to permanent FTEs where appropriate, utilising a best-in-class

contractor vendor management system coupled with more comprehensive

analysis and reporting to management.

• Establishment and utilisation of a contractor talent pool

• Proportionate savings allocations to all Groups and Cluster entities to identify

savings

• More detailed monthly management reporting to monitor actual spend against

budget

• Streamline systems and processes to create efficiencies.

b. Any positions which have been made redundant by Treasury are the result of an

analysis of work priorities and the structure required to deliver on outcomes. They are

not entirely driven by cost saving or efficiency dividend objectives.

c. The Commissioning NSW function was wound up following a review which

determined it had substantially delivered on its remit and the processes and controls

were materially embedded in agencies.

icare

23. How many roles are being cut from icare in the whole of icare restructure?

a. What are the gradings of the roles being cut?

RESPONSE

The whole of icare restructure commenced with consultation on 25 May 2021. As at

the end of August 2021, this has resulted in 80 redundant roles comprising:

• 54 Individual Employment Agreement (IEA) roles; and

• 26 Award roles.

A breakdown of the Award roles are as follows:

Grade Number of Roles

4/5 1

5/6 6

7/8 1

9/10 10

11/12 8

Total 26

24. What assurances will you make to the vulnerable injured people under workers

compensation, life-time care and support, and dust diseases, that the cuts to staff will

not reduce service and service times?

RESPONSE

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Front line roles are accountable for providing quality customer service and service

times to support people injured under workers compensation, lifetime care and dust

diseases. icare confirms that no frontline roles were impacted because of the whole of

icare restructure which in-turn should not reduce service and service times.

Treasury Managed Fund

25. With the projected average cost of a psychological claim in the Treasury Managed

Fund sitting at $199,000, and many injured public servants waiting for months for

access to support, what measures are you taking to improve support and access to

return to work in NSW Government agencies who are part of the TMF?

RESPONSE

icare is working with its Claims Service Providers and Agencies to develop and

deliver programs that aim to provide both the tools and knowledge to prevent

psychological injury claims, and to improve the management once a claim has been

lodged.

The needs of icare’s agencies vary significantly based on the service they provide to

the people of NSW. As such, while some programs can be delivered across the whole

TMF scheme, a number are agency specific.

From a claims perspective, icare is refreshing the Work Injury Screening and Early

intervention, or WISE program, for TMF Agencies. It is also providing extension

training and learning to support NSW government sector employees to maintain their

own mental health, support mental wellbeing in others (e.g., Mental Health First Aid,

Leading with Psychological Safety and Mental Health Peer Connect programs).

icare is also providing oversight and support for Claims Service Provider and Agency

specific programs, including:

• The Connect and Care program, which aims to empower injured people and their

leaders to identify potential injuries, overcome barriers and to achieve mutually

beneficial outcomes. This program supports both prevention and effective claims

management.

• NSW Health: Pre-claim mediation pilot being conducted with Western Local

Health District, targeting prevention from bullying and harassment.

• Emergency services: EML, icare and the University of NSW have joined in

partnership to support research with Professor Richard Bryant’s team at the

Traumatic Stress Clinic. This program will be offered to 120 emergency service

workers who have difficulty in maintaining their work duties because of stress

reactions.

• Department of Education: The I am here program is a continuous learning and

support program to help education workplaces create a belief and behaviour

where it’s ok to not feel ok, and to ask for help.

The Respect and Resilience Customer Aggression Intervention is a voluntary primary

prevention program offered to employers in the NSW retail sector to prevent the

effects to an individual’s physical, psychological and social health caused by exposure

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to the spectrum of negative acts perpetrated by customers and directed at service

employees.

26. Given the Treasury Managed Fund required $2 billion in funding to prevent it from

going into deficit, what assurances can you give the hard working essential workers in

the current COVID pandemic that they will not have their workers compensation

entitlements reduced?

RESPONSE

Workers’ compensation entitlements for injured workers are managed in accordance

to existing legislative requirements as determined by the State Insurance Regulatory

Authority.

Expenses

27. For each department, agency, State Owned Corporation or other body, and for each

division of those bodies, if any, in your portfolio/cluster in FY 20/21 what was the

total amount spent on each of the following categories?

a. Indoor plants

b. coffee and tea

c. crockery

d. kettles, sandwich presses and toasters

e. alcohol

f. cakes, muffins and pastries

g. computers, computer monitors and office chairs

h. office renovations and fit-outs

i. taxi and rideshare expenses

j. office equipment

k. office renovations or upgrades

l. hospitality

m. conferences

n. travel

o. accommodation

p. employee development and training activities

q. study assistance

r. travelling and meal expenses

s. temporary accommodation benefits - commercial and private

t. removal and storage expenses

u. education of children

v. reimbursement of transaction expenses (includes stamp duty, real

estate costs for employee who is moving)

w. reimbursement of incidental costs (includes gas, electricity)

x. additional benefits

RESPONSE

NSW Treasury captures the following expenses information in regular data reporting:

Item Amount

(a) Indoor plants $19,543.16

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(b) coffee and tea Level of detail requested is not captured in normal

accounting process

(c) crockery Level of detail requested is not captured in normal

accounting process

(d) kettles, sandwich presses and

toasters

Level of detail requested is not captured in normal

accounting process

(e) alcohol $1,684.21

(f) cakes, muffins and pastries Level of detail requested is not captured in normal

accounting process

(g) computers, computer monitors and

office chairs $493,694.62

(h) office renovations and fit-outs $211,838.30

(i) taxi and rideshare expenses $34,295.07

(j) office equipment $74,297.98

(k) office renovations or upgrades Refer to (h)

(l) hospitality $66,157.02

m) conferences $330,962.83

(n) travel

$77,473.32

Items are not readily separated. (o) accommodation

(r) travelling and meal expenses

(p) employee development and

training activities $1,140,933.82

(q) study assistance $89,388.94

(s) temporary accommodation

benefits - commercial and private Nil

(t) removal and storage expenses Nil

(u) education of children Nil

(v) reimbursement of transaction

expenses (includes stamp duty, real

estate costs for employee who is

moving)

$9,695.51

(w) reimbursement of incidental costs

(includes gas, electricity)

No incidental costs relating to personal use are

reimbersed.

(x) additional benefits

Employee benefits e.g. Recreation leave,

Superannuation, etc are all available in the audited

financial statements presented in the relevant year's

Annual Report.

Information in relation to other entities are published in their respective annual

reports. I refer you to the annual reports of those entities.

28. For each department, agency, State Owned Corporation (SOC) or other body, and for

each division of those bodies, if any, in your portfolio/cluster, from FY 20/21 what are

details (specific item, and total cost) of the top five most expensive occurrences of

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spending on each of the following categories?

a. indoor plants

b. coffee and tea

c. crockery

d. kettles, sandwich presses and toasters

e. alcohol

f. cakes, muffins and pastries

g. computers, computer monitors and office chairs

h. office renovations and fit-outs

i. taxi and rideshare expenses

j. office equipment

k. office renovations or upgrades

l. hospitality

m. conferences

n. travel

o. accommodation

p. employee development and training activities

q. study assistance

r. travelling and meal expenses

s. temporary accommodation benefits - commercial and private

t. removal and storage expenses

u. education of children

v. reimbursement of transaction expenses (includes stamp duty, real estate costs

for employee who is moving)

w. reimbursement of incidental costs (includes gas, electricity)

x. additional benefits

RESPONSE

NSW Treasury captures the following expenses information in regular data reporting:

(a) Indoor Plant Top 5 most expensive items Amount

Facilities Services May/Jun20 6,911.36

Accr Jul20 – Indoor Plant Hire 2,417.31

Accr Oct-20 – Minor Office Fitout Costs. 1,979.71

Accr Sept-20 – Minor Office Fitout Costs. 1,979.71

Accr Jun-21 – Indoor Plant Hire 1,730.02

Accr Aug20 – Minor Office Fitout Costs. 1,544.38

( e ) Alcohol Top 5 most expensive items - 4 items only Amount

Supplies for end of financial year all staff recognition event 1,118.36

Supplies for end of financial year all staff recognition event 362.54



Gift of wine for panel list 68.18

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(g) Computer & Chairs Top 5 most expensive items Amount

214 x replacement laptops 400,770.64

Olympus - QN002157 - 14 x HP Elite Book360 Laptops 38,323.45

Olympus - QN070820-05 x Surface Pro Laptops 16,110.44

Olympus - QN 001641 - 10 x Samsung Monitors 7,712.95

Haworth-6 x Zody Chairs 2,937.48

(h) office renovations and fit-outs Top 5 most expensive items - 3 payments only Amount

Cooling Tower - York St - Air Conditioning towers at Sydney

Startup Hub 56,742.00





(i) Taxi and rideshare expenses Top 5 most expensive items Amount

Cabcharge-Mar21-Small Business Commission 814.23

Cabcharge-Mar21- Commercial & Procurement Team 560.05

Cabcharge-Oct20-Small Business Commission 574.00

ACR-Taxi-May21-Small Business Commission 603.86

ACR-Taxi-Jun21-Communications Team 759.26

(j) Office Equipment Top 5 most expensive items Amount

POMT engaged to replace/configure 1 new LCD TV and AV in

Riddell Room

3,029.33

Apple - 50 iPhone Purchase (25 x Iphone 12 black 128GB and 25 x

Iphne 12 Blue 128GB)

61,050.00

Olympus - QN001931 - USB Order 250 x Stor N Go Slider, USD

2.0 Drive 16 GB Black

1,072.50

Nallawilli Room - Samsung UHD Interactive E-Board, mobile

stand and cabling

3,500.00

Olympus-QN001965-KeyboardMouse Set Order 4,085.00

(l) Hospitality Top 5 most expensive items Amount

NSW Small Business 2020 Partner Reception 3,246.81

Australia-Vietnam Young Leadership Dialogue Launch (AVYLD)

from International Trade - Investment & Market ASEAN

6,000.00

Catering from Budget Day-17.11.20 4,595.87

MCA-Catering-22/04/21- Bringing together NSW Government

representatives and business leaders to discuss initiatives to support

economic recovery in Sydney CBD

7,000.00

General Catering 11 Mar 21 - Sydney Start-up Hub 4,741.20

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General Catering 10 Mar 21 - Sydney Start-up Hub 4,741.20

(m) Conference Top 5 most expensive items Amount

Sprouta-Collective Intelligence Sessions-4 groups of x 2 faciliated

sessions (90 mins delivered virtually)

25,000.00

International Operation team (part of Trade) - UK representative 26,096.40

Professional Model Build training May21: Commercial Assets,

Commercial Transactions, ISFU, Procurement, Financial Risk Mgt

17,000.00

Facilitation for Culture Conversations at Treasury 14,000.00

Facilitation for Culture Conversations at Treasury 14,000.00

(n)+(o)+( r ) Travel related expenses Top 5 most expensive items Amount

Citi-Trvl-04.05-03.06.21-Flight-Jobs,Investment, Tourism team 4,014.45

Citi-Trvl-04.05-03.06.21-Accommodation-Trade Team 3,709.16

Hotel Accommodation Trip to Shanghai 19/6 - 10/7 : Trade

Commissioner in China 5,834.67

Hotel Accommodation Shanghai2/11/-14/11/2020 -Trade

Commissioner in China 4,025.90

Hotel accommodation in Shanghai - Trade Commissioner in China 4,260.31

(p) employee development and training activities Top 5 most expensive items Amount

Senior Leadership development 86,430.00

Diploma of Government Enrolment - Grads - 9 participants 52,551.00

Senior Leadership development: 40%Leader as Coach & 40% Lead

the way

105,360.00

Senior Leadership development: Styles & Climate assessment and

Debrief for 30 x leaders

67,500.00

Senior Leadership development: 40%Leader as Coach & 40% Lead

the way

105,360.00

(q) Study Assistance Top 5 most expensive items Amount

Learning & Development – NSW Procurement Employee – MBA

(Yr 4)

7,500.00

Outcome Budgeting Employee – UTS – Master of Data Science

and Innovation (Yr 4)

3,898.75

Regulatory Improvement (ESD) Employee UoS – Y6 Juris Doctor 10,000.00

Education (P&B) Employee UoNSW – Master of Economics

(Term 2-3)

6,634.79

Outcome Budgeting Employee UTS – Master of Data Science and

Innovation (Yr 4)

6,101.25

(v) Reimbursement of transaction expenses (includes stamp

duty, real estate costs for employee who is moving) Top 5 most expensive items – Only 2 items exist Amount

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Reimburse Reallocation Cost 7,695.51

Reimburse Reallocation Cost 2,000.00

* No information readily available for other categories not listed. See question 27 response.

Information in relation to other entities are published in their respective annual

reports. I refer you to the annual reports of those entities.

Questions from the Hon Mark Latham MLC

29. In his 4 years as Secretary why has Mr Pratt allowed Treasury to be turned into a

political agency, especially with its emphasis on de-gendered language, sexuality

politics, Rainbow flags, Rainbow cakes, unconscious bias training, affirmative action,

Indigenous employment, expensive Indigenous art works in the tea-room and

'acknowledgement of country' even on Zoom calls?

RESPONSE

The premise of this question is incorrect.

30. What use have the political programs in (29) above been to the people of NSW during

the health and economic crisis now facing the State?

RESPONSE

Treasury staff have worked tirelessly during the pandemic on covid related measures.

Treasury staff have been instrumental in developing the 2020 and 2021 business

support measures and providing economic and fiscal advice to inform government

decision making at Crisis Policy Committee.

31. As Deputy Secretary, Economic Strategy and Productivity, what have been Ms

Wilkie’s achievements in:

a. economic strategy?

b. productivity?

RESPONSE

Ms Wilkie’s performance is a matter for the Secretary not Budget Estimates.

32. Due to Ms Wilkie’s preoccupation with political programs rather than economic

productivity, isn’t this the reason why NSW Treasury has had to establish a separate

Productivity Commissioner and White Paper process, to do the work Ms Wilkie has

been distracted from with her political activism?

RESPONSE


33. Has Treasury staff ever been surveyed on whether they want to be a political agency

rather than a conventional Treasury working on economics? If so, what did the survey

results show?

RESPONSE

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34. Why would any rational, properly qualified economist want to work in the NSW

Treasury given the self-indulgent internal focus on the identity politics of senior

management, rather than delivering economic efficiency and value-for-money for the

people of NSW?

RESPONSE


35. Why has Treasury narrowed the pool of people wanting to work for the agency by

effectively excluding economic rationalists and libertarians as per (34) above? What

evidence can Mr Pratt produce showing that the talent pool has not narrowed?

RESPONSE


36. With Treasury’s big emphasis on Reconciliation Strategies and activities, how many

Treasury staff are unreconciled to Indigenous Australia? Who are they and what went

wrong?

RESPONSE


37. When did the NSW Treasury shift from an assessment of equity defined by socio-

economic disadvantage to one based on identity politics and the personal

characteristics of race, gender and sexuality? Why was this change made?

RESPONSE


38. Why has Treasury failed to cut the appropriation for NSW Parliament House given the

extraordinarily wasteful expenditure on bollards, the Speaker’s courtyard, dining room

renovations, frosted bar doors, ceiling replacements and identity-based employment

positions?

RESPONSE

Treasury does not make decisions on the level of appropriation provided to

Parliament.

39. How many government grant a) programs and b) allocations within those programs

have been identified by Treasury as unjustified on economic and productivity grounds?

What are the details?

RESPONSE

While Treasury is responsible for the development of the program evaluation

guidelines, individual agencies are responsible for managing the evaluation of

programs, including grant programs. As such, requests for details of specific

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evaluations should be directed to the relevant agencies where available.

40. For each of the past three budgets which government grant a) programs and b)

allocations within those programs provided money to privately-owned businesses for

a. capital works?

b. building extensions?

c. vehicle safety measures?

d. subsidising the input material goods and services of the business?

RESPONSE

Although Treasury is involved in the assessment of new spending proposals put

forward by agencies, other Clusters are responsible for the delivery of grant programs

including the allocations within those programs. The information requested in this

question is best directed to the Clusters with policy responsibility.

41. What is the Benefit Cost Ratio for each of the 145 new material Budget expenditures

listed in Budget Paper No.1?

RESPONSE

The benefit cost ratio of proposals are produced for the purposes of informing ERC

discussions and are therefore Cabinet-in-Confidence.

42. What is the expected productivity impact of the Treasurer’s spending program

encouraging people to have lunch in the Sydney CBD on Fridays?

RESPONSE

The program is paused due to the current public health restrictions in place. Any

advice provided to the Crisis Policy Committee of Cabinet is Cabinet-in-Confidence.

43. Which cluster portfolios brought forward spending reduction proposals to the ERC

process for the 2021-22 Budget?

RESPONSE

Clusters routinely bring forward proposals to offset the impact of other proposals

sought, as part of the budget process each year. Details on specific items brought

forward by each cluster to ERC for consideration are Cabinet-in-Confidence.

44. What was the budgetary outcome for the proposals in (43) above?

RESPONSE

Details on specific items brought forward by each cluster to ERC for consideration

are Cabinet-in-Confidence. Any material new policy proposal that was agreed as part

of the budget process is listed in the Measures Statement.

45. I refer Mr Pratt to the advice Treasury gave the Treasurer in answer to my

Supplementary Question at the March 2021 estimates on the failure of the 10 Treasury

Indigenous staff to travel to disadvantaged Indigenous communities in Western NSW,

and ask:

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a. Have they travelled there since March? Why not?

b. How can Covid be a reason for not travelling when for large parts of the past

18 months NSW has not had Covid-related travel restrictions?

c. What is the real reason for these staff not visiting disadvantaged Aboriginal

communities in Western NSW?

d. Looking at the current situation in Western NSW communities like Dubbo and

Walgett, does Mr Pratt now regret this failure of staff to visit, given how the

staff could have provided Covid Safe advice and vital assistance with

vaccinations?

e. Going forward, how can Treasury have specially appointed Indigenous staff

who never visit Indigenous communities in need? What is Mr Pratt doing to

correct this oversight?

RESPONSE

Treasury has no specially appointed Indigenous staff. Treasury has no roles which

involve providing frontline support to communities regarding COVID-19 or

vaccinations. This is the responsibility of NSW Health and other agencies. Treasury

does prepare advice in consultation with our frontline colleagues in other agencies.

Treasury has suspended all travel for staff due to COVID-19 in line with whole of

Government policy.

46. Why has the Government failed to proceed with its stamp duty reforms? Is this

because of:

a. the loss of fiscal discipline in the Budget meaning that the reforms are

unaffordable?

b. the government couldn’t forego the 22% increase in transfer duty forecast in

the 2021/22 Budget?

RESPONSE

The Government is consulting broadly on a proposal to replace stamp duty with a

annual property tax. An initial Consultation paper was released in November 2020

and a progress paper was released in June 2021, with comment sought by the end of

July 2021. The feedback from this process is being considered, and work is

continuing toward a final model for the Government to consider.

47. Has Treasury studied the various Benefit-Cost Ratios for options to construct rail links

to and from the new Second Sydney Airport at Badgerys Creek prior to the allocation

of funding? What do the BCRs show?

RESPONSE

Due to Cabinet in Confidence provisions, Treasury cannot provide the advice that was

prepared to inform Cabinet deliberations regarding the Greater West or Airport Metro.

48. Why has Ms Wilkie been in charge of the work on the Electric Vehicle funding plan?

What does the Treasury modelling show about the productivity impact of this reform?

RESPONSE

A key aspect of the Government’s electric vehicle reform package is the abolition of

motor vehicle duty from electric vehicles and the introduction of a road user charge.

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This work was led by the Tax Reform Taskforce within Treasury, which operates

within Ms Wilkie’s Economic Strategy and Productivity Group.

49. In the forward estimates, how much will be spent on EV charging stations? What does

Treasury estimate will be the take up rate for using these stations, measured by the

number of EVs using them on a daily basis in different regions of NSW?

RESPONSE

Page 21 of the Government’s Electric Vehicle strategy states that the NSW

Government will invest $171 million over the next four years on charging

infrastructure. The rollout of this program will be administered by the Department of

Planning, Industry and Environment, and Transport for NSW and the question is best

directed to these agencies.

50. What estimates has Treasury made of the impact in NSW of a) supply restrictions and

b) increased prices from the EU carbon credits policy for EVs, by which European

manufacturers keep their EV supply for sale in Europe to enjoy the credit financial

benefits?

RESPONSE

This is Cabinet in Confidence.

51. Prior to the current Sydney Covid lockdown, how many Treasury staff were working

a. from home?

b. back in their regular workplace?

RESPONSE

Prior to this current lockdown, Treasury staff were working flexibly in a ‘hybrid’

working environment, allocating their time between the office (as their work ‘base’)

and their home, based on individual and business need and agreed through a plan with

their manager.

52. What communications has Treasury has with a) Julie Bishop, b) David Cameron and

c) Lex Greensill concerning the Greensill Capital invoice financial model? What are

the details?

RESPONSE

None.

53. On page 4-6 of Budget Paper No. 1 can Treasury please explain the reason for the

listing of each of the 10 items in Table 4.3 as “new revenue measures”?

RESPONSE

Table 4.3 of Budget Paper No. 1 lists new policy decisions with a revenue impact.

Measures with a material impact (i.e. greater than $20m over the forward estimates)

are presented in the table showing the profile of each measure.

Treasury Circular 14/28 provides guidance on the distinction between parameter and

technical adjustments (variations) and measures. In short, all decisions that are not

Parameter and Technical Adjustments (PTAs) are considered as new policy measures.

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While the following definitions relate primarily to expenditure, they also serve as a

useful basis for classifying revenue measures.

Definition

New Policy Measure A Measure (New Policy) constitutes a decision by government that

involves discretionary changes to existing policy, which may affect

budget aggregates or agency funding. This is where the Government is

not simply responding to an exogenous change in order to maintain

current service delivery levels. All decisions that do not constitute a

Parameter and Technical Adjustment can be considered as New Policy.

Variation Parameter and Technical Adjustments (PTAs) are a material, non-

discretionary change in the net cost or timing of expenditure on

existing programs or capital projects under existing policy parameters.

By convention, Table 4.3 of Budget Paper No. 1 has included all measures with a

revenue impact, regardless of whether the measure was primarily a revenue decision,

or an expenditure or capital decision with an associated revenue impact.

Treasury reviews on an ongoing basis how expenses and revenues are reported and

described in Budget papers, and will consider whether any change in reporting

convention of revenue measures may or may not be appropriate.

54. On page A5-5 of Budget Paper No.1 what are the nature of the new Treasury Cluster

“social impact investments with a focus on women facing disadvantage and

Indigenous youth”? How much is being spent on this measure, how and why?

RESPONSE

The Government has established a $30 million NSW Social Impact Outcomes Fund

(SIOF) to pilot a range of social impact investments through competitive tenders. The

SIOF will see the Government partnering with multiple social impact providers

(including social enterprises) to deliver high impact programs, initially focusing on

women facing disadvantage and Indigenous youth.

55. What social impact investments is Treasury making for desperately poor people who

are male and non-Indigenous?

RESPONSE

Over the past 8 years, the Government has developed nine non-gender specific social

impact investments. To date, these investments have directly supported over 6,000

people through programs aimed at increasing permanency for children in out-of-home

care, reducing recidivism, improving community palliative and mental health care,

and reducing youth unemployment and homelessness.

56. Did Treasury object to the recent 2-week closure of the NSW construction industry

and what was the nature of that objection? How much economic damage did the

closure cause?

RESPONSE

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The Crisis Policy Committee of Cabinet has provided overarching strategic policy

leadership during the COVID-19 pandemic response. The Committee operates in

accordance with Cabinet conventions, including collective Ministerial responsibility

and confidentiality. Any advice provided to the Crisis Policy Committee of Cabinet is

Cabinet-in-Confidence.

57. With regard to the report SCO932-2020, the review of State-Owned Corporations,

a. why did Treasury undertake this review?

b. which division of Treasury was involved in the conduct of the review?

c. what action has Treasury taken in response to the findings of the

review?

RESPONSE

This was commissioned by ERC and the review is Cabinet in Confidence.

Questions from Ms Abigail Boyd MLC

Budget – Georges River Koala Habitat

58. What budget is set aside to manage and rehabilitate Crown Land that is prime Koala

habitat along the Georges River that is currently being degraded by illegal 4 WD, trail

bike and Mountain biking?

RESPONSE

The 2021-22 NSW Budget invested $22.6 million ($15.4 million recurrent expenses

and $30.0 million capital expenditure over two years) for the Cumberland Plain

Conservation Plan to acquire the first stage of the Georges River Koala Reserve. The

Reserve will protect up to 1,885 hectares of koala habitat, with 100,000 new trees

planted in the first three years of the Plan to enhance the connectivity of fragmented

koala habitat both within and outside the reserve. This infrastructure is managed by

the Planning, Industry and Environment Cluster.

Budget – Funding for Domestic Violence Sector

59. Is the NSW Government committed to a 50% increase in funding to the specialist

domestic and family violence sector to ensure all victim-survivors, vulnerable children

and their families receive immediate, effective, high quality specialist support? If not,

why not?

RESPONSE

As published in the 2021-22 NSW Budget Papers (the Budget), the NSW Government

has committed $204.9 million in funding to the specialist domestic and family violence

sector in 2021-22. This commitment is additional to the significant investment the NSW

Government has made to address domestic and family violence through mainstream

services in child protection, education, health, housing and police.

New funding provided within the Budget focussed on victim-survivors’ support and

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safety. Detail of specific programs should be directed to DCJ

60. Is the NSW Government committed to prioritising the funding of domestic and family

violence prevention and early intervention programs, services and education

campaigns to stop the violence before it begins, and to change the culture of gendered

violence in NSW? If not, why not?

RESPONSE

The NSW Government is committed to reforming the domestic and family violence

service system in line with the key actions recommended within the NSW Domestic and

Family Violence Blueprint for Reform 2016-2021: Safer Lives for Women, Men and

Children (‘the Blueprint’). The Blueprint identifies prevention and early intervention

as key priority areas.

The NSW Government has worked to achieve change in these priority areas, by

devising and publishing the NSW Domestic and Family Violence Prevention and Early

Intervention Strategy 2017-2021, creating the Domestic and Family Violence

Innovation Fund, expanding Tackling Violence and rolling out targeted ethical

bystander initiatives.

Budget - Funding for Social and Affordable Housing

61. Is the NSW Government committed to investing in the construction of new social and

affordable housing, at the equivalent of 5,000 social housing properties every year for

the next 10 years, and increasing funding for the Specialist Homelessness Services

Program by 20% in 2022? If not, why not?

RESPONSE

The NSW Government is committed to investing in the construction of new social

and affordable housing across New South Wales.

The 2020-21 NSW Budget (the Budget) included an additional $812 million over four

years to deliver new social housing and undertake maintenance and upgrades of

existing social housing stock. This package is expected to deliver over 800 new social

houses and upgrades to around 16,500 existing properties across the Land and

Housing Corporation, Aboriginal Housing Office and community housing portfolios

across 2020-21 and 2021-22. This funding also accelerates the Airds-Bradbury and

Claymore housing estate redevelopments, contributing to the delivery of over 500

new social housing dwellings and 1,000 new land lots for sale to build private homes.

The Government’s $1.1 billion Social and Affordable Housing Fund (SAHF) is also

providing an innovative approach to deliver social and affordable housing, including

the recently completed St George Community Housing 160-unit complete at Redfern.

To date, the SAHF has enabled the delivery of over 2,000 new social and affordable

dwellings across New South Wales, part of a commitment to deliver over 3,400

dwellings.

The Budget included an additional $57 million over two years to expand the Together

Home program. This program provides further support through additional leasing and

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wrap around services for 250 households for two years and support for another 100

dwellings in the community housing provider sector.

Budget Transparency

62. To ensure transparency and accountability, will the NSW Treasury commit to clearly

stated Budget line items in the 2022 Budget Papers to ensure spending on domestic

and family violence prevention and response in New South Wales is transparent and

can be tracked?

RESPONSE

Budget Paper 2 Outcomes Statement details the NSW Government’s continued

investment in reducing family, domestic and sexual violence.

Page 7-7 of Budget Paper 2 illustrates that in the Budget, the Government has

committed to spend $204.9 million on preventing family, domestic and sexual

violence, reducing reoffending and supporting victim safety through the continuation

of evidence-based early intervention, victim support and perpetrator interventions.

The Budget is a forward-looking document. Agency annual reports contain data on

historical financial expenditure and performance. The NSW Government also

provides a NSW Domestic and Family Violence Blueprint for Reform: Annual Report

Card, which is accessible via the Women NSW website.

Bank Fees

63. What was the gross amount of bank fees charged to the NSW Government and related

entities in FY2020-21?

RESPONSE

The total gross amount of transaction fees for banking products provided to the State

under the State Banking agreements with Westpac, ANZ and Citi for FY 20/21 was

$44.3 million.

Stamp Duty

64. Does the NSW Government have the legislative power to waive stamp duty on electric

vehicles and plug-in vehicles, as proposed in the Budget, without passing new

legislation? If so, has that power, or will that power, be exercised prior to any new

legislation coming into effect?

RESPONSE

The Government cannot waive stamp duty on vehicles under current legislation.

Due to delays to Parliamentary passage of the Electric Vehicles (Revenue

Arrangements) Bill 2021, the Government has indicated that it will seek amendments

to the Bill to allow for duty exemptions for eligible vehicles with effect from 1

September 2021.

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The availability of any of the incentives in the Electric Vehicle Strategy is contingent

on all aspects of the Bill passing through Parliament when it resumes.

65. When will the NSW Government release a revised proposal for implementing a

property tax in place of stamp duty on transfers of real estate?

RESPONSE

The Government is consulting broadly on a proposal to replace stamp duty with a

small annual property tax. An initial Consultation paper was released in November

2020, and a progress paper was released in June 2021, with comment sought by the

end of July 2021. The feedback from this process is being considered, and work is

continuing toward a final model for the Government to consider.

Transport Asset Holding Entity

66. How is the Transport Asset Holding Entity (TAHE) treated under the ratings

methodology of Standard & Poor’s? How is it treated under Moody’s methodology?

RESPONSE

These are captured under General Government Sector borrowings as TAHE receives

equity injections from the Crown for capital funding.

67. Would having TAHE as an on-balance sheet entity for accounting purposes impact on

the State’s credit ratings with Moody’s and/or Standard & Poor’s?

RESPONSE

TAHE is on the Total State Sector Accounts balance sheet. TAHE has the same

impact on the balance sheet as RailCorp, which has existed since 2004.

68. Under current accounting standards, is there a risk that TAHE’s independence for

accounting purposes (i.e. to qualify the entity as off balance sheet) will be impacted by

the nature of agreements TAHE enters into with the NSW Government and its related

entities? How does Treasury ensure that TAHE’s arrangements do not compromise its

independence for accounting purposes?

RESPONSE

TAHE is controlled by the State for accounting purposes and consolidated in the Total

State Sector Accounts (TSSA). It is therefore on the State’s balance sheet. TAHE is

classified as a Public Non-Financial Corporation (PNFC) and is therefore not

consolidated into the General Government Sector section of the TSSA. As a State-

Owned Corporation, TAHE must comply with the provisions of the SOC Act.

TREASURY - parliament.nsw.gov.au

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